Nov 23 2023, 09:33
Stock Radar:CAMS can give over 40% returns:
The stock hit a record high above Rs 4000 levels on 1 September 2021, but failed to hold on to the
momentum. It witnessed a
breakdown in February 2022 from the 50-week Moving Average and crucial support. Since then, the
stock has been moving in a 700-point range where Rs2650-2700 acted as a resistance on the upside and Rs 2000 on the
downside.
Computer Age Management Services (CAMS), a part of the financial services industry, has given a breakout from a consolidation phase since April 2022 and other technical indicators also suggest that upside is likely to continue.
Long-term traders can look to buy the stock now for a possible target above Rs 4100 levels, which translates into an upside of over 40% from Rs 2841 recorded on 21 November.
Most of the other technical indicators such as the Ichimoku system triggered a buy for the stock. The average directional index (ADX), a trend indicator, is above 24 which signifies a robust uptrend.
"CAMS stock is looking ripe for a major upside in coming months. The stock has triggered various parameters in multiple studies which makes it very lucrative at the current levels. Traders can buy for a target of Rs 4100 in the next 12-18 months," Gaurav Bissa, VP, InCred Equities, said.
CAMS failed to enjoy the upside witnessed by many of the midcap stocks and the midcap index itself. However, the stock is now looking ripe for a major upside in the coming months.
"CAMS stock has triggered various parameters in multiple studies which makes it very lucrative at the current levels. In terms of price action, the stock has formed higher high and higher low on the weekly charts signalling the start of a fresh uptrend," said Gaurav Bissa, VP, InCred Equities.
"The stock has also witnessed a consolidation breakout with multi-month high volumes, which can push it towards previous life high around Rs 4100," he said.
"Among technical indicators, the stock has triggered a buy signal in the Ichimoku system on the weekly timeframe, which can result in the start of a fresh uptrend," highlighted Bissa.
source: et
Nov 23 2023, 13:45